Economic Development Plan Narrowly Approved

Saturday 30 June 2018

The latest economic development plan passed by just a single vote in the States on Thursday.

And the Committee was ordered to return to the States with a priority order for the 20-items contained within its flagship report. Previously it had been listed in “no particular order”.

With this slither of confidence around how the committee intends to prioritise and deliver initiatives in less than two years, its President Charles Parkinson now has to convince the assembly it can be done.

This is the second such strategy to have been presented to the States, after the downfall of the previous committee late last year. 

The report is built around four main themes:

Contained within the plan is a damning assessment on nearly a decade’s worth of economic growth in the island – or moreover, the lack of it. Between 2009 and 2016, it states, Guernsey’s economy grew less than 1%. And in 2016 it expanded by a lackluster 0.6% to £2.86bn.

The finance sector, including legal and accounting activity, is around 44% of the total output at around £1.2bn.

Among others, the island’s “critical strengths” would continue to include ‘constitutional stability’, the rule of law, substantial human capital through a well-educated, highly skilled population, nimble decision making, the English language, a safe and secure environment and a time-zone convenient for global business.

During Tuesday’s debate, former Economic Development President Peter Ferbrache was elected to lead the States Trading Supervisory Board. This is the organisation charged with overseeing the arms-length States commercial organisations including Guernsey Water, Dairy, Electricity and Aurigny.

Deputy Ferbrache said he had one over-riding priority, and that once he was fully up to speed with STSBs work, if it became evident more money was needed, he would not hesitate to request it.

“It is probably airlinks and Condor and doing the most we can within the next two years. Airlinks will undoubtedly need more money, and they will be large sums – but I am not afraid to ask for them.”

Current Economic Development President Charles Parkinson also revealed on Tuesday that a long-awaited report into the tourism offering in the island would not be presented to the States before the first quarter of 2019 – despite the fact the ED Board had seen it in November 2017.